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please answer all parts Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can sell 20-year, $1,000-par-value bonds paying annual

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Cost of debt using both methods (YTM and the approximation formula) Currently, Warren Industries can sell 20-year, $1,000-par-value bonds paying annual interest at a 8% coupon rate. Because current market rates for similar bonds are just under 8 %, Warren can sell its bonds for $1,070 each; Warren will incur flotation costs of $20 per bond. The firm is in the 27 % tax bracket. a. Find the net proceeds from the sale of the bond, N b. Calculate the bond's yield to matunity (YTM) to estimate the before-tax and after-tax costs of debt c. Use the approximation formula to estimate the before-tax and after-tax costs of debt. a. The net proceeds from the sale of the bond, Nt, is $(Round to the nearest dollar.) b. Using the bond's YTM, the before-tax cost of debt is %. (Round to two decimal places.) Using the bond's YTM, the after-tax cost of debt is%. (Round to two decimal places.) c. Using the approximation formula, the before-tax cost of debt is % (Round to two decimal places.) Using the approximation formula, the after-tax cost of debt is % ( Round to two decimal places.)

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